First in Line for New Money – Doug French – Mises Daily

Increases in money aren’t sprinkled from the sky, floating indiscriminately into whoever’s hands are in the right place at the right time. Money-supply increases occur through the commercial banking system and Federal Reserve. Those who receive the money first benefit at the expense of those receiving the money last.

“The fiat dollar is an ‘elite’ system,” Jim Grant told the Wall Street Journal recently, “and Wall Street is its supporting ‘interest group’ — those nimble, market-savvy, plugged-in folks know how to shuffle assets and exploit cheap funding from the Fed to leverage up their profits and soften the downside.”

Comments & Responses

2 Responses so far.

Sure, but this is the system that economic libertarians (like yourself) have been demanding since the 70s. The rest of us realized it was unfair and unjust long before it started to come undone.

It always baffles me that the cheer leaders for economic liberalism present themselves as down trodden and ignored by government (as is the case on mises.org – but in fact since the 70s governments have unquestioningly supported economic liberalism. You’re winning, stop pretending to be the victims.

It’s not economic liberalism when the government spends over half of national income and regulates so comprehensively. To think so is bizarre.

It is true that Monetarists have advocated our present monetary arrangements but that was a mistake. I see a banking system characterised by state monopoly, central planning, legal privilege and the socialisation of commercial risk. That’s what’s wrong with it.